Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.
At StockStory, our job is to help you avoid costly mistakes and stay on the right side of the trade. That said, here are three volatile stocks to steer clear of and a few better alternatives.
Procore Technologies (PCOR)
Rolling One-Year Beta: 1.73
With a mission to build software for the people that build the world, Procore Technologies (NYSE: PCOR) provides cloud-based software that enables owners, contractors, and other stakeholders to collaborate and manage construction projects from any device.
Why Does PCOR Fall Short?
- Products, pricing, or go-to-market strategy may need some adjustments as its 13.6% average billings growth over the last year was weak
- Estimated sales growth of 12% for the next 12 months implies demand will slow from its two-year trend
- Operating margin dropped by 1.9 percentage points over the last year as the company focused on expansion rather than profitability
At $53.13 per share, Procore Technologies trades at 5.4x forward price-to-sales. Read our free research report to see why you should think twice about including PCOR in your portfolio.
Marriott Vacations (VAC)
Rolling One-Year Beta: 1.71
Spun off from Marriott International in 1984, Marriott Vacations (NYSE: VAC) is a vacation company providing leisure experiences for travelers around the world.
Why Should You Sell VAC?
- Demand for its offerings was relatively low as its number of conducted tours has underwhelmed
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Marriott Vacations is trading at $54.91 per share, or 7.6x forward P/E. Check out our free in-depth research report to learn more about why VAC doesn’t pass our bar.
BankUnited (BKU)
Rolling One-Year Beta: 1.07
Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE: BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.
Why Are We Cautious About BKU?
- 5.6% annual net interest income growth over the last five years was slower than its banking peers
- Anticipated 15.3 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 4.9% annually
BankUnited’s stock price of $50.49 implies a valuation ratio of 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than BKU.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
